It’s always exciting to land a new client, but when that client does not pay you and the debt adds up, excitement turns into anxiety and disappointment. It may be time to consider hiring a commercial collection agency. We all know managing a business and the cash flow process is a financial pain point. We’ve spent a lot of time on this blog discussing: Turning debt over to a collection agency Choosing the right collection agency for your business Innovative steps for protecting your business now and in the future Today, we will discuss the true cost of hiring a commercial collection agency ..read more

Clients often want to know about demand letters. They may consider having an attorney send a demand letter before turning it over to collections. Paying an attorney for an hour or two to write a letter is less expensive than a collection agency contingency fee. But, a letter itself may not actually get you paid. It may take a lot more work, which is why we get so many claims after a legal demand has been sent. 1. What’s in a Demand Letter In the case of collections, a demand letter from an attorney often has: A brief review of the history of the relationship A description of the debt Legal j ..read more

Risk and Reward are the two sides of almost every business deal. What are you risking if the deal doesn’t go well? What will you gain if it does go well? Does the reward justify the risk? In collections, we often have to weigh risk and reward and make similar calculations. When trying to decide what the riskier or safer course of action is, we consider not only the amount of money owed, but also the specific debtor company and management, the business sector and the economy in general. Right now, for example, unpaid invoices are extremely risky for many business sectors. The pandemic has shut ..read more

We’ve talked before about the bad rap debt collectors get in movies and television. A lot of the misconceptions about debt collectors actually come from the behavior of debt buyers. If you are looking for new ways to pursue unpaid invoices, it’s important that you understand the difference between the debt buyers and debt collectors. 1. Debt Buyers Don’t Pay A Lot Debt buyers usually only pay you pennies on the dollar for your unpaid invoices. The older the debt is, the less they’ll pay for it. This is part of their business model. A debt buyer will buy multiple (typically thousands) debts ch ..read more

Cancelled events. From personal events like weddings to trade shows, Covid-19 has hit the event industry hard. Cancellations affect event organizers, professional entertainers, marketers and attendees. For some businesses, an annual trade show is where they make most of their sales. Being out the new sales and potentially the deposits on the show can hit a company hard. We’ve heard from clients of all types with questions about how we can help them deal with expected refunds, or fight a refund request. Whatever side of the question you’re on, here are 5 things you need to know. 1. It all come ..read more

All too often during the collection process our clients need to consider which is best for them, a lump sum payment with at a significant discount of what they are owed or a long-term payment plan for the full amount. We always want to collect 100%, but that isn’t always the right business decision for our clients. Our clients look to us for recommendations. A recent email exchange shows how we look at the situation. Background Our client is an international company specializing in architectural technology. Their customer originally owed them over $77,000 but there was a dispute. We initially ..read more

Cash is King during COVID-19. Poor cash flow can cause a significant number of financial issues but in a pandemic it can destroy your business. The good news is, strengthening your cash flow in a volatile environment can improve your overall cash position. Cash flow is about both bringing in more cash and spending less cash. You must manage both expenses and revenue to optimize results. To build a more stable cash flow, here are six tips to better manage and control cash. 1. Collect a Deposit First Anytime you work for someone before receiving payment, you are loaning them money. Given the pa ..read more

During this difficult time, protecting your health and the health of your family is the most important task. Of course, the health of your business is critical as well. The Covid-19 crisis will end. When it does, you want your business to be in as good a shape as possible. Keeping your business running and healthy might seem difficult in these days of forced closures. We offer the following six strategies for helping your company. Get to Know Your Customers Even in the best of times we urge you to make sure you fully understand your clients and their business. Today, it’s more impo ..read more

As a collection agency, we obviously think that we’re in the best position possible to help you collect on unpaid invoices. But, we are sometimes asked for alternatives. We don’t take it personally, we know people like options. Here are four other ways you could potentially deal with unpaid invoices. Invoice FactoringWith invoice factoring you sell your unpaid invoices to a third party. The factoring company pays you a lump sum in advance and the invoice is then paid to them by your customer. If you are in a financial bind, factoring can provide immediate cash flow relief. Factoring compan ..read more

Many business models rely on auto renewal contracts. Auto renewals provide a business with a reliable cash flow and they provide clients with reliable service. No one wants to come in on Monday morning to discover that the software they depend on is no longer available to them. However, auto renewals are also a frequent source of confusion and disagreement between client and vendor. Many clients do not read their auto renewal contracts carefully and come to feel taken advantage of by them. We often handle claims from companies that result from unpaid invoices related to auto renewals. S ..read more